Earnings Release • May 11, 2017
Earnings Release
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Q1 2017 interim report
• Received purchase order from Uno-X Hydrogen for additional H2Station® in Bergen.
| KEY FIGURES | 2017 | 2016 | 2016 |
|---|---|---|---|
| (Unaudited figures in NOK million) | Q1 | Q1 | FY |
| Operating revenue | 35.7 | 26.0 | 114.5 |
| Total operating costs | 51.3 | 36.1 | 169.8 |
| EBITDA | -13.0 | -7.6 | -44.9 |
| EBIT | -15.6 | -5.4 | -55.3 |
| Pre-tax profit | -16.2 | -10.1 | -62.6 |
| Net profit | -15.6 | -9.7 | -55.8 |
| Net cash flow from operating activities | -14.0 | -21.3 | -34.2 |
| Cash balance end of period | 368.4 | 289.0 | 225.5 |
Nel reported revenues in the first quarter 2017 of NOK 35.7 million, compared to NOK 26.0 million in the first quarter of 2016, representing a growth of 37.3 per cent, following an increased interest in hydrogen solutions as fueling stations, electrolysers and integrated systems.
The underlying project-development pipeline is strong, and the company continues to experience a high activity level for its prospects and ongoing tender processes. The planned high activity level within business development in new markets like California, investments, and preparation for production ramp-up developed as expected.
At the end of the first quarter of 2017, the company had an all-time-high order book of approximately NOK 260 million.
The operating earnings in the first half of 2017 will be impacted by the transaction costs related to the acquisition of Proton OnSite. The acquisition of Proton OnSite will create the world's largest hydrogen electrolyser company with a global footprint and combined pro forma FY 2016 revenues of NOK 342.7 million and an order book of approximately NOK 400 million.
The 2017 no-cash costs for the stock option- and share incentive program are currently expected at an average of approximately NOK 3.0 million per quarter, but may increase going forward as the number of employees under the program could grow.
Costs of goods sold increased to NOK 19.3 million (11.2), while total other operating costs totalled NOK 32.0 million (24.9). Salaries and social costs expenses amounted to NOK 18.2 million (14.0) and other operating expenses increased to NOK 11.2 million (8.5). Operating profit ended at NOK -15.6 million (-10.1).
Reported pre-tax profit was NOK -16.2 million (-10.1), while the net loss for the quarter was NOK -15.6 million, compared to a loss of NOK -9.7 million in the same quarter last year.
Total assets were NOK 933.7 million at the end of the first quarter 2017, compared to NOK 762.9 million at the end 2016. Total equity was NOK 831.2 million. Thus, the equity ratio was 89 percent.
Net cash flow from operating activities in the first quarter 2017 was NOK -14.0 million, compared to NOK - 21.3 million in the same quarter last year. Net cash flow from investment activities was NOK -11.4 million (- 2.9). Net cash flow from financing activities was NOK 168.3 million, compared to NOK 0.2 million in the corresponding quarter last year. Nel's cash balance at the end of the first quarter was NOK 368.3 million.
Nel is a global, dedicated hydrogen company, delivering optimal solutions to produce, store and distribute hydrogen from renewable energy. The company serves industries, energy and gas companies with leading hydrogen technology. Since its foundation in 1927, Nel has a proud history of development and continual improvement of hydrogen plants. Our hydrogen solutions cover the entire value chain from hydrogen production technologies to manufacturing of hydrogen fueling stations, providing all fuel cell electric vehicles (FCEVs) with the same fast fueling and long range as conventional vehicles today.
The company has three divisions, covering the entire hydrogen value chain: Nel Hydrogen Electrolyser, Nel Hydrogen Fueling, and Nel Hydrogen Solutions.
Nel Hydrogen Electrolyser is a world-leading supplier of hydrogen production plants based on alkaline water electrolyser technology. The company dates back to 1927, when Norsk Hydro developed large-scale electrolyser plants, providing hydrogen for use in ammonia production with fertiliser as the end-product. Since then, the electrolyser technology has been improved continuously, and Nel Hydrogen Electrolyser has accumulated unique experience and knowledge about hydrogen fueling stations and power-to-gas systems.
Traditionally, hydrogen is used as an input to a number of industrial applications, including as industrial feedstock, to provide a protective atmosphere, and for other purposes. Relevant sectors include food production, chemicals/refining, metallurgy, glass production, electronics, generator cooling, and the production of polysilicon for use in PV solar panels.
Looking ahead, hydrogen will increasingly be utilised as an energy carrier, both to maximise the utilisation of renewable energy and, subsequently, as a sustainable fuel for zero-emission FCEVs. With the commercial introductionx' of FCEVs already taking place, Nel Hydrogen Electrolyser intends to supply the hydrogen fueling, energy storage and power-to-gas markets.
The water electrolyser market currently accounts for only a small fraction of the total hydrogen market, but is expected to grow significantly in the coming years, primarily driven by increased fueling and energy storage demand. By 2020, 40 percent of renewable electricity is expected to take the form of wind and solar power (Source: IEA).
A number of energy storage projects have been initiated worldwide, and Nel Hydrogen Electrolyser expects this development to be a main driver of demand for hydrogen energy storage in the medium term. The sector has specific interest in Nel Hydrogen Electrolyser, because the market growth is making Nel Hydrogen Electrolyser's portfolio of large-scale products increasingly relevant.
Nel Hydrogen Electrolyser started commercial sales of electrolysers in the 1970s, and has sold more than 850 electrolyser units in 60 countries across Europe, South America, Africa and Asia. The company has production facilities in Notodden, Norway, and has a global reach through its in-house sales apparatus and extensive network of agents.
Nel Hydrogen Electrolyser's water electrolysis are considered world-class. The company's long experience in the electrolysis field and sustained research and development efforts over the past 90 years give it a unique technological platform.
The company's Nel A electrolysers are widely respected for their robustness, reliability and energy efficiency. The products set a benchmark for competitors. When the products' flexibility, ease-of-use, high capacity and safety record are added to the list, the solutions are simply unmatched.
Nel has also launched the new containerised Nel C-range electrolysers, thereby offering a low-cost, turnkey solution, representing the world's smallest footprint for containerised, high capacity electrolysers.
The new configurations – Nel C-150 and Nel C-300 – are containerised and are offered in addition to the existing industrial Nel A-range of electrolysers. The new products will have an output capacity of either 150 and 300 Nm3 /hr respectively, which is equivalent to about 330 or 660 kg of hydrogen per day. The standard gas output pressure of the units is either 30 or 200 bar, which makes these products ideal both for industrial purposes, and for producing renewable hydrogen integrated with hydrogen fueling stations for cars, buses or other utility vehicles.
In addition, the company is developing the RotoLyzer®, a pressurised, compact electrolyser, which utilises a vertical, rotating cell pack, providing full operational flexibility, while allowing for low production costs. This opens up new market segments for Nel Hydrogen Electrolyser, and provides an ideal solution for hydrogen fueling stations where space is limited, or integration with renewable energy sources. The technology is patented and has been verified through extensive testing.
The company is currently constructing a full scale commercial prototype that will undergo extensive longterm testing before being offered to the market.
Nel Hydrogen Fueling (former H2 Logic) is a leading manufacturer of H2Station® hydrogen fueling stations that provides FCEVs with the same fast fueling and long range as conventional vehicles today. Since incorporation in 2003, Nel Hydrogen Fueling has invested significantly in R&D, bringing H2Station® to a level where products are offered to the early market for roll-out of larger networks of hydrogen fueling stations.
Today, Nel Hydrogen Fueling is one of few global leaders on fast fueling for FCEVs. H2Station® technology is in operation in several European countries, providing hydrogen fueling for fuel cell electric vehicles from major car manufacturers.
Nel Hydrogen Fueling was among the first to achieve fast fueling of hydrogen in compliance with the SAE J2601 standard required by the major car manufacturers. In Denmark, Nel Hydrogen Fueling has delivered H2Station® technology for the entire Danish network of hydrogen fueling stations, operated in collaboration with leading oil, energy and gas companies.
Aside from providing fast fueling, H2Station® technology has a long proven track-record of reliable operation with more than 99 percent availability – one among the highest recorded in the world for a scattered network of 24-hour public available hydrogen fueling stations. The ambition is to keep this position and act as a preferred supplier of H2Station® for international infrastructure operators such as oil, energy and gas companies.
Nel Hydrogen Solution offers efficient system integration, project development and sales across segments and is the only provider of integrated solutions along the entire value chain:
Nel Hydrogen Solutions aims to be the preferred business partner for the hydrogen industry in California, Scandinavia, Japan, South-Korea and Germany for the development of hydrogen solutions across the value chain, from hydrogen fueling stations networks to large-scale renewable hydrogen production plants. Nel Hydrogen Solutions leverages on the experience from delivering and operating the entire Danish hydrogen network, in collaboration with leading oil-, energy- and gas companies.
Nel Hydrogen Solutions will also be responsible for the deployment of equipment to Uno-X Hydrogen and the building of a network of hydrogen fueling stations that will enable FCEVs to operate between all the major cities in Norway within 2020.
Nel Hydrogen Electrolyser experienced a strong quarter with revenues of NOK 16.5 million, compared with NOK 8.5 million in the same quarter last year, following ongoing electrolyser project deployments, the initiation of the delivery of a Nel-C electrolyser to Icelandic Hydrogen and general after-market activities. Nel continues to see a high interest for the new containerised Nel C-range electrolysers, thereby offering a low-cost, turn-key solution, representing the world's smallest footprint for containerised, high capacity electrolysers.
Nel Hydrogen Electrolyser is also progressing as planned with the commercialisation of the RotoLyzer® electrolyser, targeting a commercial unit of 10 Nm3/h by 2018, and a commercial scale prototype operational in 2017.
In January 2017, Nel Hydrogen Fueling launched a multipurpose hydrogen fueling station, which includes up to three separate dispensers connected to one fueling module.
The new H2Station® offers customers a modular, flexible and scalable fueling solution. The station can operate up to three hydrogen dispensers and can fuel hydrogen cars, buses, trucks, forklifts, and even trains. It also has the world's most compact footprint and is based on years of R&D and operational experience in the field, where it is renowned for providing high fueling reliability for customers.
The new multipurpose H2Station® offers fast fueling with long range, according to international standards. It can also be expanded based on customers' need for hydrogen, and is prepared for increase of hydrogen storages and the addition of dispensers when utilization increases.
The new Herning facility continues to be on track, with total investments of NOK 85 million. The factory will have an annual capacity to manufacture hydrogen fueling stations sufficient to support 200 000 FCEV annually. When ramp-up and plant optimisation is complete, the facility will have a name-plate production capacity of up to 300 fueling stations per year. This will ensure further product improvements over time as well as other scale benefits.
In February 2017, Nel entered into a framework contract for the supply, construction and maintenance of H2Station® hydrogen fueling stations in California for Royal Dutch Shell Plc ("Shell") in a partnership with Toyota Motor Corp. The total value depends on the number of H2Stations and the scope of equipment and services. First purchase orders were received after the closing of the quarter, with a value in excess of NOK 140 million
The announcement followed the California Energy Commission (CEC) Notice of Proposed Awards (NOPA) for the Grant Funding Opportunity. Through this project, Shell will build fueling stations at seven new locations for hydrogen cars in California through a partnership with Toyota Motor Corp.
The California Energy Commission is considering \$16.4 million in grants toward these stations, with Shell and Toyota contributing their part.
California also represents an opportunity within hydrogen production, as 33 percent of the hydrogen must be renewable, compared with today's situation with no renewable hydrogen available on the market.
Nel and SunPower Corp. (Nasdaq: SPRW) announced in February the agreement to develop the first renewable hydrogen production plant in the USA. The parties are still evaluating different sites for this initial project.
Nel and SunPower will jointly develop, operate, maintain, and market the renewable hydrogen produced at the plant. The parties target to develop the project during 2017 and start marketing renewable hydrogen (Ex Works/at the plant) at a price of less than 4 USD/kg.
Both the technical solution that Nel is developing together with SunPower, as well as the partnership itself, will have great potential going forward.
Nel also announced that the company has entered into Letter of Intent (LoI) with Hexagon Composites ASA and PowerCell Sweden AB to establish a joint venture (JV) for the development of integrated hydrogen projects. The joint venture will initially focus on opportunities in the maritime and marine segments as well as projects to leverage renewable energy resources.
This cooperation is strategically important, as Nel will be working with global market leaders and utilising each party's respective technologies and competencies to develop new hydrogen solutions. The JV will be equally owned by the three parties and will initially focus on projects within marine applications. Over time, however, the JV may also evaluate projects within other application areas.
The JV is aimed at creating a one-stop-shop for customers wanting to utilize hydrogen technologies across the value chain: From renewable hydrogen production, to storage, distribution and dispensing, to generating electricity via fuel cells. The jointly-owned entity will manage and develop the projects to ensure that technologies from the JV-partners are effectively integrated into complete and optimal solutions for the customer.
Together with Nel's leading technology for hydrogen production and fueling, the three companies are positioned to deliver unparalleled customer value in the form of a zero-emission power solutions. The final JV agreement was signed after the closing of the quarter.
Nel Hydrogen Solutions was also awarded a contract by Icelandic Hydrogen for three H2Station® hydrogen fueling stations and a Nel C-series electrolyser.
Initially, Icelandic Hydrogen will establish three hydrogen fueling stations connected to central renewable hydrogen electrolysis production, and be aimed at a continuous long-term expansion of the network along with FCEV deployments to meet a growing hydrogen fuel demand. Icelandic Hydrogen is a newly established JV between the major Icelandic oil retail company Skeljungur HF (owning 90%) and Nel (owning 10%). The purpose of the JV is to establish a network of hydrogen fueling stations and renewable hydrogen production in Iceland.
Skeljungur is a stock exchange listed, major oil retail company operating in Iceland and the Faroe Islands, with more than 75 service stations throughout the countries and more than 200 employees. Skeljungur will provide the JV with locations for hydrogen fueling and retail operational expertise. Nel will provide both hydrogen production and fueling equipment as well as operational experience from more 30 hydrogen fueling station installations across Europe.
The contract has a total value of more than EUR 4 million. The target is to start shipping equipment towards the end of 2017 and install during 2018.
27 February 2017, Nel announced a non-binding term sheet to acquire the Connecticut U.S. based hydrogen technology company Proton OnSite, creating the world's largest hydrogen electrolyser company with a global footprint, largest hydrogen electrolyser company with a global footprint and combined pro forma FY 2016 revenues of NOK 342.7 million and a combined order book of approximately NOK 400 million.
The purchase price corresponds to an enterprise value of USD 70 million. The contemplated acquisition will be settled by USD 20 million in cash, and new shares of Nel released in equal instalments after 12 months and 24 months at an agreed share price of NOK 2.72.
Incorporated in 1996, Proton OnSite has been developed into the largest manufacturer of on-site hydrogen
generators with over 2,600 units installed worldwide in more than 75 countries. The company offers advanced Proton Exchange Membrane ("PEM") electrolysis systems to various markets, focusing on small to medium sized plants. Proton OnSite's recently developed Megawatt product line is viewed as a significant area of focus and deemed to be a key success criteria going forward. The company had revenues of USD 27 million in 2016 and is headquartered in Wallingford, Connecticut, with approximately 90 employees.
Following satisfactory due diligence, after the closing of the quarter, Nel signed a final and binding share purchase agreement to acquire 100% of the shares of Proton OnSite.
Nel considers Proton OnSite and Nel as a strong strategic fit, with synergies related to sales and commercialisation, product portfolio, R&D and best practices across the combined company. Nel expects a solid demand for PEM electrolysers going forward and will by this acquisition be able to fully complement its product portfolio. Following are the key acquisition rationale:
The closing of the agreement is subject to certain conditions, including relevant public approvals and other third party consents, absence of material adverse effects and correctness of representations. The timing of closing of the transaction depends on satisfactory fulfilment of these conditions, including the public approval process, but is expected to occur around June / July 2017.
Nel is exposed to risk and uncertainty factors, which may affect some or all of the company's activities. Nel has financial risk, market risk as well as operational risk and risk related to the current and future products. There are no significant changes in the risks and uncertainty factors compared to the descriptions in the Annual Report for 2016.
In addition to the activities related to hydrogen, Nel continues to evaluate opportunities for its former healthcare business, including, but not limited to, possible mergers, acquisitions and strategic partnerships.
Nel is at the forefront of the hydrogen industry as a pure play company with market leading technology, a strong management team, a solid balance sheet and is positioned to play a leading role in a fast moving industry. With completion of the acquisition of Proton OnSite, Nel will both offer a complete range of electrolyser technology, and become the world's biggest electrolyser company, positioning the company even stronger for the market growth in the foreseeable future. The combined company had pro forma FY 2016 revenues of NOK 342.7 million, and a combined order book of approximately NOK 400 million at the end of the first quarter of 2017.
The company has the following 2017 outlook for its segments:
| Øystein Stray Spetalen | Martin Nes | Anne Marie Gohli Russell |
|---|---|---|
| Board member | Chairman | Board member |
| (Sign) | (Sign) | (Sign) |
| Eva Dugstad | Jan Christian Opsahl | Kristin Hellebust |
|---|---|---|
| Board member | Board member | Board member |
| (Sign) | (Sign) | (Sign) |
| Mogens Filtenborg | Jon André Løkke | |
|---|---|---|
| Board member | CEO | |
| (Sign) | (Sign) |
| PROFIT & LOSS | Note | 2017 | 2016 | 2016 |
|---|---|---|---|---|
| (condensed figures in NOK thousands) | Q1 | Q1 | Q1-Q4 | |
| Operating Income | ||||
| Sales income | 32 650 | 21 823 | 98 446 | |
| Other operating income | 3 052 | 4 187 | 16 032 | |
| Total operating revenue | 35 702 | 26 010 | 114 479 | |
| Operating expenses | ||||
| Cost of goods sold | 19 273 | 11 166 | 60 841 | |
| Total cost of goods sold | 19 273 | 11 166 | 60 841 | |
| Operating costs | ||||
| Wages and social costs | 18 201 | 13 979 | 60 266 | |
| Depreciation and amortisation | 2 591 | 2 450 | 10 431 | |
| Other operating costs | 11 228 | 8 485 | 38 253 | |
| Total other operating costs | 32 020 | 24 913 | 108 950 | |
| Total operating costs | 51 294 | 36 080 | 169 790 | |
| Operating profit (loss) | -15 592 | -10 070 | -55 312 | |
| Financial income | 1 209 | 970 | 3 599 | |
| Financial expenses | 839 | 404 | 1 759 | |
| Share of profit and loss associate and joint venture | -938 | -617 | -9 165 | |
| Net financial income/expense | -568 | -51 | -7 325 | |
| Profit (loss) before taxes | -16 160 | -10 121 | -62 637 | |
| Tax costs | -516 | -376 | -6 808 | |
| NET PROFIT (LOSS) | -15 644 | -9 746 | -55 829 | |
| Items that may subsequently be reclassified to profit or loss | ||||
| Currency translation differences | 677 | -6 167 | -19 617 | |
| Other comprehensive income | 677 | -6 167 | -19 617 | |
| TOTAL COMPREHENSIVE INCOME | -14 967 | -15 913 | -75 446 | |
| Basic EPS (figures in NOK) | 3 | -0,0230 | -0,0143 | -0,0818 |
| Diluted EPS (figures in NOK) | 3 | -0,0236 | -0,0143 | -0,0818 |
| BALANCE SHEET | Note | 2017 | 2016 |
|---|---|---|---|
| (condensed figures in NOK thousands) | Q1 | Year end | |
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Intangible assets | |||
| Technology | 64 984 | 57 854 | |
| Customer relationship | 26 968 | 27 861 | |
| Goodwill | 317 604 | 317 629 | |
| Total intangible assets | 409 556 | 403 344 | |
| Tangible fixed assets | |||
| Land, buildings and real estate | 46 656 | 44 778 | |
| Fixtures and fittings, tools, etc. | 1 203 | 1 025 | |
| Total tangible fixed assets | 47 859 | 45 804 | |
| Financial fixed assets | |||
| Investments in associates | 12 869 | 13 708 | |
| Total financial fixed assets | 12 869 | 13 708 | |
| Total non- current assets | 470 283 | 462 855 | |
| CURRENT ASSETS | |||
| Inventories | 42 465 | 36 266 | |
| Trade receivables | 38 469 | 34 974 | |
| Other receivables | 14 088 | 3 312 | |
| Financial current assets | 0 | 0 | |
| Cash and cash equivalents | 368 349 | 225 467 | |
| Total current assets | 463 370 | 300 019 | |
| TOTAL ASSETS | 933 654 | 762 875 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 149 732 | 136 736 | |
| Share premium/Other paid equity | 781 321 | 619 329 | |
| Treasury shares | -1 377 | -1 377 | |
| Retained earnings | -98 435 | -83 468 | |
| Total equity | 831 241 | 671 219 | |
| NON-CURRENT LIABILITIES | |||
| Deferred tax liability | 13 041 | 13 552 | |
| Total provisions | 13 041 | 13 552 | |
| Other long term liabilities | |||
| Other long term liabilities | 8 940 | 12 550 | |
| Total other long term liabilities | 8 940 | 12 550 | |
| CURRENT LIABILITIES | |||
| Liabilities | |||
| Accounts payable | 19 564 | 16 790 | |
| Tax payable | 373 | 370 | |
| Social security, VAT etc. payable | 389 | 1 347 | |
| Dividends payable | 0 | 0 | |
| Other current liabilities | 60 106 | 47 046 | |
| Total current liabilities | 80 432 | 65 553 | |
| TOTAL EQUITY AND LIABILITIES | 933 654 | 762 875 |
Statement of changes in Equity and Number of
| Shares: | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Curr. | |||||||||
| (figures in NOK/numbers) | Note | Share capital |
Share premium |
Other reserves |
conv. effects |
Other equity |
Total equity |
Number of shares |
Cum. No of shares |
| As at 31st December 2015 Transaction costs rel. Increase |
136 120 | 601 710 | 1 200 | 54 318 | -62 340 | 731 008 | 680 601 326 | 680 601 326 | |
| in capital Q4 | -500 | -500 | |||||||
| Net profit Q1 2016 | -9 746 | -9 746 | |||||||
| Currency translation | |||||||||
| differences Q1 2016 | -6 167 | -6 167 | |||||||
| As at 31st March 2016 | 136 120 | 601 210 | 1 200 | 48 151 | -72 085 | 714 595 | 680 601 326 | 680 601 326 | |
| Increase of capital 16.6.16 | 616 | 7 003 | 7 619 | 3 076 926 | 683 678 252 | ||||
| Net profit Q2 2016 | -15 565 | -15 565 | |||||||
| Currency translation | |||||||||
| differences Q2 2016 | -2 324 | -2 324 | |||||||
| As at 30 June 2016 | 136 736 | 608 213 | 1 200 | 45 827 | -87 651 | 704 325 | 683 678 252 | 683 678 252 | |
| Net profit Q3 2016 | -12 030 | -12 030 | |||||||
| Currency translation differences Q3 2016 |
-12 495 | -12 495 | |||||||
| As at 30 September 2016 | 136 736 | 608 213 | 1 200 | 33 332 | -99 681 | 679 801 | 683 678 252 | 683 678 252 | |
| Net profit Q4 2016 | -18 488 | -18 488 | |||||||
| Options and share program | 9 916 | 9 916 | |||||||
| Treasury shares | -1 377 | -1 377 | |||||||
| Currency translation differences Q4 2016 |
1 368 | 1 368 | |||||||
| As at 31 Desember 2016 | 136 736 | 608 213 | 11 116 | 34 701 | -119 547 | 671 219 | 683 678 252 | 683 678 252 | |
| Increase of capital 16.6.16 | 12 996 | 158 107 | 171 103 | 64 980 000 | 748 658 252 | ||||
| Net profit Q1 2017 | -15 644 | -15 644 | |||||||
| Options and share program | 3 884 | 3 884 | |||||||
| Treasury shares | 0 | ||||||||
| Currency translation | |||||||||
| differences Q1 2017 | 677 | 677 | |||||||
| As at 31 March 2017 | 149 732 | 766 320 | 15 000 | 35 378 | -135 191 | 831 241 | 748 658 252 | 748 658 252 |
| CASH FLOW STATEMENT | 2017 | 2016 | 2016 |
|---|---|---|---|
| (condensed figures in NOK thousands) | Q1 | Q1 | Q1-Q4 |
| Cash flow from operating activities | |||
| Pre-tax profit (loss) | -15 637 | -10 121 | -62 637 |
| Interest costs, reversed | 91 | -699 | 629 |
| Interests income, reversed | -847 | 155 | -2 399 |
| Depreciation and amortisation | 2 591 | 2 450 | 9 732 |
| Impairment of tangible and intangible assets | 467 | ||
| Impairment of fixed assets | 0 | 0 | |
| Change in provisions | 0 | 292 | -1 377 |
| Change in inventories | -6 199 | -5 257 | -21 243 |
| Change in trade receivables | -3 682 | 19 522 | 5 387 |
| Change in trade payables | 2 846 | -10 168 | 30 |
| Change in other short-term receivables | |||
| and other short-term liabilities | 6 813 | -17 448 | 37 244 |
| Net cash flow from operating activities | -14 024 | -21 275 | -34 167 |
| Cash flow from investment activities | |||
| Proceeds from sale of fixed assets | 0 | 0 | 0 |
| Acquisitions of fixed assets | -2 825 | -552 | -44 506 |
| Acquisition of intangible assets | -8 582 | -2 325 | 0 |
| Disposal of fixed assets | 37 | ||
| Payment of loan given to associated company/JV | |||
| Acquisitions of associated companies | -15 737 | ||
| Acquisitions of subsidiaries / financial fixed assets | |||
| Proceeds from sale of subsidiaries | |||
| Net cash flow from investing activities | -11 407 | -2 878 | -60 207 |
| Cash flow from financing activities | |||
| Interest paid | -91 | 699 | -629 |
| Interest received | 847 | -154 | 2 399 |
| Gross cash flow from share issues | 176 747 | 7 118 | |
| Transaction costs connected to share issues | -5 642 | -500 | |
| Proceeds from new loan | 0 | 413 | |
| Payment of long term liabilities | -3 548 | -311 | -2 090 |
| Net cash flow from financing activities | 168 313 | 147 | 6 798 |
| Net change in cash and cash equivalents | 142 882 | -24 050 | -87 575 |
| Cash and cash equivalents | 368 349 | 288 992 | 225 467 |
The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). This financial information should be read together with the financial statements for the year ended 31st of December 2016 prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the EU.
The accounting policies used and the presentation of the Interim Financial Statements are consistent with those used in the latest Annual Financial Statements.
The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.
The financial statement is presented on the going concern assumption under International Financial Reporting Standards as adopted by the EU.
As per the date of this report the company has sufficient working capital for its planned business activities over the next twelve-month period.
The preparation of condensed interim consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses
In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the condensed interim financial statements:
Revenue recognition:
.
Based on the nature of the agreements with the customers, NEL has assessed that the production of the 0 series of the CAR-200 fueling station meets the criteria to fall within the scope of IAS 11 – Construction contracts. This revenue is thus recognised in proportion to the stage of completion of each contract activity.
The estimates and underlying assumptions are reviewed on an ongoing basis, considering the current and expected future market conditions. Changes in accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
NEL operates within two business segments, Hydrogen fueling stations and Hydrogen Electrolysis solutions. Through its subsidiary NEL Hydrogen A/S based in Herning, Denmark, the group offers H2Stations® for fast fueling of fuel cell electric vehicles as well as services in relation to the supply of these stations. Through its subsidiary NEL Hydrogen AS, based in Notodden, Norway, the group offers hydrogen plants based on water electrolysis technology for use in various industries. NEL operates within two business segments, Hydrogen fueling stations and Hydrogen Electrolysis solutions. Through its subsidiary NEL
| Hydrogen Fueling stations Hydrogen Electrolysis solutions |
Other/ Elimination | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | ||
| (figures in NOK million) | Q1 | Q1 | Full year | Q1 | Q1 | Full year | Q1 | Q1 | Full year | Q1 | Q1 | Full year | |
| Total operating revenue | 19,3 | 18,8 | 71,1 | 16,2 | 7,8 | 44,3 | 0,2 | -0,6 | -0,9 | 35,7 | 26,0 | 114,5 | |
| Total operating cost | 24,7 | 19,5 | 87,2 | 3,4 | 11,6 | 52,3 | 23,5 | 5,0 | 30,3 | 51,6 | 36,1 | 169,8 | |
| Operating profit | -5,4 | -0,7 | -16,1 | -0,2 | -3,8 | -8,0 | -10,3 | -5,6 | -31,2 | -15,9 | -10,1 | -55,3 | |
| Net Financial income (expence) | -0,2 | -0,6 | -0,4 | -0,3 | -0,1 | -0,7 | 0,0 | 0,6 | -6,2 | -0,5 | -0,1 | -7,3 | |
| Pre- tax profit (loss) | -5,6 | -1,3 | -16,5 | -0,6 | -4,0 | -8,7 | -9,7 | -4,4 | -37,4 | -15,9 | -9,7 | -62,6 | |
| Total Assets | 138,9 | 53,3 | 414,2 | 101,5 | 82,5 | 108,9 | 692,6 | 645,3 | 191,1 | 933,0 | 781,1 | 771,1 | |
| Total Liabilities | 52,1 | 26,1 | 40,6 | 56,0 | 49,2 | 63,6 | -6,0 | -8,8 | 46,4 | 102,1 | 66,5 | 150,6 |
The table below shows the movements in goodwill during Q1 2017
| Amount (NOKm) | |||
|---|---|---|---|
| 2017 | 2016 | ||
| Q1 | Full year | ||
| Goodwill as of 1 January | 317,6 | 333,0 | |
| Other acquisitions in 2015 | |||
| Write down Goodwill Hyme (under liquidation) | (0,5) | ||
| Currency translation differences | - | (14,9) | |
| Goodwill as of 31 December/31 December | 317,6 | 317,6 |
Title: Nel ASA
Published date: 11.05.2017
[email protected] +47 23 24 89 50
Karenlyst allé 20, Sjølyst plass 2, 0278 Oslo, Norway
The publication can be downloaded on nelhydrogen.com
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